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Edenville Energy progressing Rukwa coal-to-power project

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World Coal,

Edenville Energy has provided an update on progress on its Rukwa coal-to-power project in southwest Tanzania following the granting of the mining licence for its Rukwa coal deposit on 23 February 2016.

The company has subsequently initiated and significantly advanced a development schedule across the project's mining and power plant components.

According to Edenville, the grant of its mining licence combined with the Tanzanian Government's commitment to rapidly develop coal-fired power plants to expand the country's electricity supply, has allowed project work to increase significantly.

The company will continue discussions with potential funding and technical partners during this work programme, as Edenville aims to add maximum value while retaining control of the project.

Work that is already in progress or set to begin in 2Q16 includes:

  • Sourcing and acquisition of suitable plant and machinery for the commencement of site earthworks scheduled for 2Q16. The company is running final comparisons between hire, purchase and contract options to determine the most cost effective solution to commence site preparation works, as per the conditions of the mining licence.
  • Excavation and testing of a bulk sample of coal to determine the proportion of coal to be washed and optimise design for both the coal wash plant and power plant furnace and boiler.
  • Commissioning of remaining mining bankable feasibility study (BFS) work. This will incorporate both near-term mining plan and large scale power plant supply requirements.
  • Expansion of the 2014 Lahmeyer power plant feasibility study to include phased scale up to a 300 MW thermal power plant. The majority of the feasibility work is already contained within Lahmeyer's 2014 study. The augmented report will be a desktop process to review expansion options for increasing power generation capacity to 300 MW.
  • Progress the power plant environmental impact assessment (EIA) work to complete the application process for the power plant EIA certificate.The EIA baseline monitoring study is due for completion in June 2016 and Tansheq, the company’s environmental consultant, is has started preparing documentation needed for the application process.
  • Commission an airborne topographic survey to accurately map both the mine and power plant locations to enable detailed design work on both mine site and power plant areas.

Edenville expects to have the majority of the tasks completed during 3Q16 with the exclusion of the power plant EIA, which is a longer lead time item. All consultancy teams are aware of, and working within, strict financial and time parameters.

Since the grant of the mining licence, Edenville has moved forward discussions with numerous potential investors and is considering options for sourcing and structure of project debt and equity. In parallel Edenville continue with site preparation and value-add technical work on the ground.

Edenville has indicated that the project is moving rapidly to clear pre-development milestones and to satisfy the requirements of the Tanzanian authorities, including the Tanzanian Ministry of Energy and Minerals (MEM) and Tanzania Electric Supply Company Ltd (Tanesco), in order to agree a power purchase agreement, setting the tariff and supply terms for the generation, sale and distribution of electricity.

Edited from press release by Harleigh Hobbs

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